Posted on 10/04/2009 3:55:12 PM PDT by rellimpank
Unemployment continues to tick upward. Small businesses forgo profits on two-for-one deals just to keep the doors open.
But we're in recovery. Treasury Secretary Timothy Geithner, the guy who couldn't get around to paying his own taxes, says so. After all, government is doing all it can to speed the recovery, isn't it?
"Fed keeps key rate near zero," the Business page headline screamed on Sept. 24. Low interest rates should get things "stimulated," shouldn't they? Then, three days later, over a Washington dateline, "Jobless benefits extension backed: Lawmakers voted 331-83 to extend jobless benefits by 13 weeks in 27 states, including Nevada, where the unemployment rate is above 8.5 percent."
That should help, right?
For the answers, let us turn to Murray Rothbard's classic account of the economic mistakes made in Washington from 1929 through 1938, "America's Great Depression."
When economies get into trouble, Mr. Rothbard points out, businessmen are "misled by bank credit inflation to invest too much in higher-order capital goods" such as houses and cars. The "boom," then, "is actually a period of wasteful misinvestment. ... Errors are made due to bank credit's tampering with the free market." This is followed by a recovery period that sees a "rapid liquidation of the wasteful investments," and, typically, a deflationary credit contraction, which helps restore confidence in the remaining sound banks.
(Excerpt) Read more at lvrj.com ...
If you jump into a deep swimming pool from a high tower, you descend at an ever slowing rate, but you are still going down...until you actually start coming up. A recession is not over until there have been two consecutive quarters of coming up (economic growth) and we haven't even had one yet. Dems lie to themselves and, with the complicity of the fringe media, to the entire nation.
Reichsminister Geitner will ensure that Alles in Ordnung. Der Americkaner Volk are in good hands with him at the helm, not to worry.
They are doing a GREAT job in Washington, The NYT tells me so.
The NYT's rectum sucks buttermilk too.
Well spit. We've seen obama in action now. Claiming a crisis, or fault of the previous admin, or both is about the only trick he has. obama is a fool or worse, has no idea what he's really doing. The recession is still in full swing, unemployment is at 9.8% and still rising. If we want out of this mess we should simply do the exact opposite of whatever obama wants to do. That goes for the economy, Iraq, Afghanistan, Missile Defense, and for d*mn-sure Healthcare.
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